Entain ($GMVHY@China) shares are trading at record highs on Wednesday after receiving a $22.4 billion takeover offer from DraftKings. This proposal is double what Entain’s partner MGM was willing to pay at the beginning of 2021. Entain stock, which owns Ladbrokes, Coral, bwin, and partypoker, rose 11% after the announcement. DraftKings is willing to pay a nearly 50% premium on Entain stock, but the deal must be approved by Entain’s partner, MGM. If MGM doesn’t approve the deal or reach an agreement with DraftKings, the deal could stall. If MGM expects to keep its BetMGM site, DraftKings may not have reason to move forward. After the announcement, Draftkings stock traded higher in early morning activity.
